Howe Audio Equipment’s accounting records carried the following

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E5-20 Making closing entries [15–20 min]

Howe Audio Equipment’s accounting records carried the following selected accounts
at April 30, 2012:

Inventory	$ 5,900	Selling expense	$ 7,300
Interest revenue	40	Sales revenue	38,400
Accounts payable	1,000	Interest expense	30
Cost of goods sold	26,900	Accounts receivable	600
Other expense	1,700	General and administrative expense	900
Howe, drawing	300	Howe, capital	8,730

Requirements
1. Journalize the closing entries at April 30, 2012.
2. Set up T-accounts for Income summary and Howe, capital. Post the closing
entries to the T-accounts and calculate their ending balances.